In an era of rapid digital transformation, understanding how digitalization within supply chain operations influences firm outcomes has become increasingly vital. This study examines how the transparency of digital initiatives, reflected through corporate disclosures, affects firm performance in the Indian retail sector. By developing a Supply Chain Digitalization Disclosure Score (SCDDS) using natural language processing and keyword-based text mining of annual reports from NSE-listed retail firms (2017–2024), the research provides an empirical assessment of the strategic value of digital transparency. Grounded in Signaling Theory and the Resource-Based View (RBV), the analysis evaluates the impact of SCDDS on both accounting-based (ROA) and market-based (Tobin’s Q) performance measures. The findings reveal a strong positive association between supply chain digitalization disclosure and firm performance, suggesting that firms effectively communicating their digital initiatives achieve superior efficiency, agility, and market valuation. The study contributes to digital transformation and supply chain literature by offering a scalable, data-driven framework for measuring digitalization intensity and emphasizing the role of transparent digital communication as a driver of competitiveness and value creation in emerging markets.